Endeavour to slash and burn in dash for cash

What happens when you put people who know nothing about wine in charge of wine businesses?

Nothing good for wine lovers.

Star Australian wine producers Oakridge, Chapel Hill and Josef Chromy are all set to be sold after new Endeavour Group CEO Jayne Hrdlicka - who knows a lot about aviation - announced plans to sell most of the company's vineyard and winery assets.

Endeavour will target $300 million in savings as Hrdlicka, formerly in charge of Virgin Australia, launches a turnaround plan to lift the struggling giant’s business profitability.

The changes were the first major announcement from Hrdlicka, who started in the role in January.

Endeavour is the largest liquor retailer in Australia, with brands that include Dan Murphy’s and BWS chains.

The plan appears to be to cut back on premium products and concentrate on bulk.

Yarra Valley winery Oakridge, under winemaker David Bicknell, has been one of Australia's best premium producers for two decades. Chapel Hill in McLaren Vale is a historic producer of top-notch wines led by talented Michael Fragos.

The company’s winery operations will be cut from seven sites to three. Endeavour will retain Cape Mentelle in Margaret River, Isabel Estate in Marlborough, New Zealand, and bulk production factory Dorrien Estate in the Barossa.

Hrdlicka said she remained committed to the Pinnacle Drinks business, which offers distribution channels and private-label wine brands, saying it was generating strong returns.

Hopefully the star brands find sympathetic owners focused on quality so Endeavour can concentrate on bulk labels and the bottom line. The decision reflects an apparent 'quantity over quality' mentality.   

New chief winemaker named at Kooyong and Port Phillip Estate

Talented Tim Perrin has been named as the new chief winemaker of Kooyong and Port Phillip Estate on the Mornington Peninsula. 

Perrin, who joins from Oakridge in the Yarra Valley, will take over from long-time winemaker Glen Hayley, who is leaving the role and departing Australia to pursue other interests. 

Prior to this appointment, Perrin worked as senior winemaker under David Bicknell at Oakridge for seven years, making a significant contribution to the success of the winemaking program there. 

Managing director Marco Gjergja said: "This appointment will enable Tim to build on his knowledge and allow him to bring his talents to Kooyong and Port Phillip Estate, evolving our winemaking in line with our family’s vision."

Perrin said he is looking forward "to building on the legacy of an iconic wine business and propelling it forward into the future to continued success". 

"We believe Tim’s focus, expertise and talent will ensure our family wine business upholds and enhances its reputation as one of the country’s finest boutique chardonnay and pinot noir producers." Gjerga said.

"Following the tough conditions that our business, region and industry have faced over the past three years and the extreme challenges associated with Covid-19, it was inevitable that a few of us would make some life-changing decisions. 

"It was with feelings of sadness, gratitude and respect that I received Glen Hayley’s resignation.

"Over his time with us, Glen’s focus, expertise and talent have been instrumental in raising the quality of our wine. He has always approached his role with total commitment, integrity, enthusiasm and passion. We wish Glen all the best with his future endeavours overseas and look forward to raising a glass to celebrate the 13-year association that we have enjoyed."

Good to see a departing winemaker acknowledged so warmly, Hayley did a great job after taking over from the esteemed Sandro Moselle.  

Perrin will commence as chief winemaker at the beginning of 2023. 

He has worked in California, at Golden State Vintners, as well as in Coonawarra, Yenda, near Griffith, and with Jim Chatto at McWilliams Wines from 2012 to 2015.

Ch-Ch-Changes work out well for Oakridge Wines

 

Wine lovers are often concerned when one of their favourite producers is sold. 

More so when an independent winery is snapped up by a business conglomerate. 

What will change? Will corporate toe-cutters strike?  

There were certainly fears for the future direction of Yarra Valley icon Oakridge Estate when, at the start of the year, it was sold to Endeavour Drinks which was then part of Woolworths.

Endeavour has since demerged from Woolworths, prompting further questions. 

Winemaker David Bicknell (above) describes it as "a tumultuous year" - but reports all is well aboard the good ship Oakridge. 

"Importantly, the more things have changed, the more they have remained the same," Bicknell says in a media release. 

"We have been granted the autonomy and given the backing to get on with making Oakridge what it should always have been - wine focused and appropriately resourced. 

"Winemaking technique is unchanged, the team is intact and the will and spirit to make good wines are stronger than ever." 

For details see www.oakridgewines.com.au     

Supermarket group swoops to buy star Yarra Valley winery

Paragon Wine Estates of the Endeavour Group has purchased premium Yarra Valley wine producer Oakridge Wines. 

Which effectively means Oakridge will be part of a complicated Woolworths group ownership structure that includes Dan Murphy's and BWS stores. 

The acquisition of Oakridge Wines includes the brands and the winery, vineyards of 20.8 hectares (with another 16.6 hectares leased) and existing grape grower relationships as well as its award-winning restaurant and cellar door.

Oakridge has been owned by Ilana Atlas and her husband Tony D’Aloisio since 2007 and has built a formidable reputation for quality under chief winemaker David Bicknell (above).

The addition of Oakridge extends the Paragon Wine Estates regional coverage with brands across five premium key wine regions in Australia and New Zealand; Oakridge Wines (Yarra Valley), Chapel Hill (McLaren Vale), Isabel Estate (Marlborough, NZ); Krondorf (Barossa Valley), and Riddoch (Coonawarra).

“We are thrilled to welcome Oakridge Wines to our Paragon family and look forward to enjoying the magic that the winemaking team led by chief winemaker David Bicknell will create in vintages to come,” said Endeavour Group managing director Steve Donohue.

Bicknell is set to stay, saying: “Personally, it’s great to have strong support and encouragement to continue 20 years of work at Oakridge, to continue to make wines the way they should be made, and to build on our reputation as sustainable farmers.

“Joining such a large drinks business will enable us to further improve Oakridge’s fine wine credentials and realise the full potential of our vineyards and our team.”